Here is where this situation resembles a pyramid or a Ponzi scheme. Some of the original bondholders are being paid with the official loans that also finance the remaining primary deficits. When it turns out that countries cannot meet the austerity and structural conditions imposed on them, and therefore cannot return to the voluntary market, these loans will eventually be rolled over and enhanced by eurozone members and international organisations.

Blejer argues that, because Greece is Greece and not Chad, it will not be punished for missing its austerity goals outlined by the EU and IMF. Instead, because this plan is funded by public rather than private investors, it could go on forever, that is until it is opposed by domestic political constituencies.

But in the end, Blejer argues it will be taxpayer who is at the bottom of the pyramid, left with the losses, while many of the original bondholders will already be paid off.